Development and Application of Multi Commodity Multi Location Integrated Model for Manufacturing Industry

Abstract

This paper presented the development and application of Linear Programming to the modeling of Multi-Commodity Multi-Location production-distribution model for manufacturing industry. The Manufacturing industry has two plants, three depots and twenty retailer’s axis in Lagos. The products are based on how they are packaged; Product 1(P1), Product 2(P2), Product 3(P3) and Product 4(P4). TORA software is used in analyzing the data obtained from the company. Comparing the optimal Multi-Commodity Multi-Location transportation cost of One trillion, Five Hundred And Thirty Billion And Four Hundred And Ninety Million Naira to existing transportation cost of truckload Three Trillion, Five Hundred And Forty Four Billion Naira, the difference is Two Trillion, Thirteen Billion And Five Hundred And Ten Million Naira which is Four Hundred And Two Billion And Seven Hundred And Two Million Naira annually resulting to 56.82 percent gain in profit.